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★ VERIFIED SCHEME REGISTER ★ SINCE 2026 ★
PUDUCHERRY KARAIKAL MAHE YANAM
State Register · Updated for 2026

Puducherry Government Subsidy Schemes

Every capital subsidy, interest subvention and SGST reimbursement currently active in Puducherry — including the region-based duration difference across the Union Territory's four disconnected enclaves — mapped clause by clause, so Mahe and Yanam's longer reimbursement window doesn't get missed.

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Schemes mapped in detail
40-45%
Capital investment subsidy
5-7 yrs
SGST reimbursement — region-dependent
4
Disconnected enclaves, different terms
Capital Investment SubsidySGST/VAT ReimbursementInterest SubsidyStamp Duty ExemptionLocal Employment RequirementAsset Lock-in ProvisionsPIPDIC Term Loans30-Day Clearance Assurance
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Estimated Value Over Tenure
₹0.00 Cr
Capital Investment SubsidySGST Reimbursement Value

Illustrative estimate from published rates — actual entitlement depends on enterprise category, region within the UT, and local employment compliance.

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The Puducherry Register

Eight schemes, and four enclaves that don't all get the same deal.

Ordered by how often we use them in a filing — the Capital Investment Subsidy and SGST Reimbursement cover most projects, but Puducherry's split geography (Puducherry, Karaikal, Mahe, Yanam) means the region you pick changes your reimbursement duration.

01
Scheme 01
Capital Investment Subsidy
Motivation of Entrepreneurs to Start Industries scheme
State Flagship Ongoing
Micro / Small
40%
cap ₹40 lakh, on land/building/plant/machinery investment
Medium / Large
35%
cap ₹35 lakh
Women / SC / ST Entrepreneurs
45%
cap ₹75 lakh — the strongest tier
Additional investments made by the unit after the first claim are also eligible for subsidy, up to the applicable ceiling limit — worth revisiting this scheme when you expand rather than assuming the first claim exhausts your entitlement.
Eligibility
  • New or existing industrial units in Puducherry, per applicable enterprise category
  • 60% of employment must go to Puducherry residents (see Scheme 05)
Application & Documents
  • Applied through the Department of Industries and Commerce, Government of Puducherry
02
Scheme 02
SGST / VAT Reimbursement
Region-dependent duration across the four enclaves
State Flagship Ongoing
Micro / Small — Puducherry & Karaikal
100%
for 5 years
Micro / Small — Mahe & Yanam
100%
for 7 years — 2 years longer
Medium / Large
75% / 50%
respectively
Mahe and Yanam are geographically separate enclaves from the main Puducherry and Karaikal regions (located on India's west coast and in Andhra Pradesh's coastal belt respectively) — the longer 7-year reimbursement window reflects their distinct, more remote industrial context within the same Union Territory.
Reimbursed against actual net VAT/SGST paid — confirm current terminology and process given the transition from VAT to GST since this scheme's original notification.
Eligibility
  • New/existing industrial units, per enterprise category and region of establishment
Application & Documents
  • Annual claims filed with the Department of Industries and Commerce

60% of your workforce must be Puducherry residents — throughout the affidavit period, not just at launch.

— why this is an ongoing compliance condition, not a one-time check
03
Scheme 03
Interest Subsidy
On fixed asset and working capital loans
General MSME Ongoing
Interest Subsidy
25%
of annual interest paid, for 5 years
Covers loans taken from financial institutions for both creation of fixed assets and working capital — a broader scope than many states' interest subsidy schemes, which often cover only one or the other.
Eligibility
  • Industrial units availing loans from recognised financial institutions for fixed assets or working capital
Application & Documents
  • Loan sanction letter and interest payment records required per claim
04
Scheme 04
Stamp Duty Exemption
Land, lease and loan documentation
General MSME Ongoing
Stamp Duty
Exempted
for purchase/lease of land, shed, buildings, mortgages and hypothecations
Covers both the property-acquisition side and the loan-security side of a project's documentation — a comprehensive stamp duty relief rather than a partial one.
Eligibility
  • Industrial units executing qualifying land, lease, mortgage or hypothecation deeds
Application & Documents
  • Deed documentation required per claim
05
Scheme 05
Local Employment Requirement
A binding condition, not an incentive
Compliance Condition Maintained throughout affidavit period
Minimum Local Employment
60%
of total employment strength must go to Puducherry residents
This is a real, ongoing compliance condition tied to a formal affidavit — not a one-time hiring target checked at commissioning. Falling below 60% at any point during the specified period risks the subsidy being reconsidered. Build your workforce plan around this from the start, especially for specialised roles that might otherwise draw from outside the UT.
Eligibility Impact
  • Applies to units availing the Capital Investment Subsidy — maintained via signed affidavit
Application & Documents
  • Affidavit submitted with the main subsidy application; ongoing payroll compliance verification
06
Scheme 06
Asset Lock-in & Additional Investment Provisions
Fine print worth reading before you sign
Compliance Condition 5-year lock-in from application/disbursement
Asset Lock-in
5 years
from date of application or disbursement, whichever is later
The industrial unit cannot transfer or dispose of the fixed assets (including plant & machinery) covered by the subsidy claim during this period — plan any future restructuring or asset-sale scenarios with this constraint in mind.
Eligibility Impact
  • Applies to any unit that has claimed the Capital Investment Subsidy
Application & Documents
  • Confirmed via the affidavit submitted with the original subsidy application
07
Scheme 07
PIPDIC Term Loans
Puducherry Industrial Promotion Development and Investment Corporation
General MSME Ongoing
Term Loan Access
Financing
for eligible industrial projects
Collateral value varies by location: for property inside Puducherry, security must equal the loan amount. For property outside the UT, it must be 150% of the loan (land + building) or 200% (land only) — a meaningfully stricter requirement if your offered collateral sits outside Puducherry.
A genuinely distinctive collateral structure — worth flagging for clients offering out-of-UT property as security, since the required cover jumps significantly compared to in-UT collateral.
Eligibility
  • Eligible industrial projects seeking term financing through PIPDIC
Application & Documents
  • Collateral valuation documents required, per the in-UT/out-of-UT distinction above
08
Scheme 08
30-Day Clearance Assurance
Non-fiscal, but a genuine process commitment
General MSME Ongoing
Clearance Timeline
30 days
assurance from submission of application
Announced as part of the government's push to promote industrialisation in the UT — worth confirming current adherence to this timeline with the Department of Industries, since assurances of this kind can vary in practice.
Eligibility
  • All industrial units submitting a complete clearance application
Application & Documents
  • Applied through the Department of Industries and Commerce single-window process
Sector-specific policies

More Puducherry policies worth checking.

Narrower, sector-specific incentives — relevant if your project sits in one of these categories. Ask us to run the numbers for your project.

Quality Certification Assistance
Support for ISO, BIS and similar quality-mark certifications for MSMEs
Ongoing
Feasibility Study Subsidy
Assistance towards project report preparation and feasibility studies
Ongoing
Power Subsidy
Reimbursement component for eligible industrial power consumption
Ongoing
Technology Upgradation Support
Assistance for MSMEs modernising plant and machinery
Ongoing
Marketing Assistance Scheme
Support for participation in exhibitions and trade fairs
Ongoing
Skill Development & Training Support
Workforce training assistance for MSMEs in the UT
Ongoing
One Union Territory, four separate pieces of geography
Puducherry isn't a single contiguous territory — it's made up of four disconnected regions: Puducherry and Karaikal (on India's east coast, in Tamil Nadu's vicinity), Mahe (on the west coast, within Kerala), and Yanam (in Andhra Pradesh's coastal belt). The SGST/VAT reimbursement duration differs by 2 full years depending on which piece you're in — Mahe and Yanam get 7 years, Puducherry and Karaikal get 5. Confirm your project's exact region before quoting a reimbursement timeline.
Our Puducherry Track Record

Subsidy value we've helped release, year by year.

Filed applications, approved claims and the subsidy mix across the schemes on this page.

Sample data — replace before publishing
Every number on this dashboard (KPIs, chart values) is placeholder data for layout purposes only. Swap in your actual filing records before this goes live — real visitors will read these as genuine track-record claims.
₹47.2 Cr
Total subsidy value facilitated
+18% vs last year
312
Applications filed in Puducherry
+42 this year
6.4 wks
Average time to sanction
1.1 wks faster
91%
Filed applications approved
+4 pts vs last year
Subsidy value released by year
₹ Crore · Puducherry filings only
FY 2021–26
Sample data. Replace with actual year-wise disbursal totals from your filing records.
Mix by benefit type
Share of total value
Sample data. Replace with your actual scheme-type breakdown.
Run your own numbers

Which of these six actually applies to you?

Pick your category and region — matched against the Puducherry register above.

Puducherry Scheme FinderRegister No. 0182-PY
Matched Entry
Scheme name
Puducherry-specific questions

What founders ask before filing in Puducherry.

Yes — the 60% threshold specifically requires Puducherry residents, not just employees from the broader region. Staff commuting from or based in Chennai (Tamil Nadu) wouldn't count toward this requirement unless they're also Puducherry residents. Track this carefully in your hiring plan since it's a maintained, ongoing condition tied to your subsidy eligibility, not a one-time check.
Both Puducherry and Karaikal get the same 5-year duration, so a project split across only these two regions doesn't create a conflict. The distinction that matters is Puducherry/Karaikal (5 years) versus Mahe/Yanam (7 years) — confirm which of the two duration groups your specific unit falls under.
Yes, but expect a stricter collateral requirement. Property outside Puducherry requires security worth 150% of the loan amount (land with building) or 200% (land only) — significantly more than the 1:1 requirement for property located within the Union Territory. Factor this into your financing plan if your available collateral sits outside Puducherry.
Filing in Puducherry

Get your Puducherry scheme stack confirmed, then filed.

We file Capital Investment Subsidy and SGST Reimbursement claims for Puducherry clients every week — including checking which of the four enclaves your project sits in before quoting a reimbursement duration.

Talk to a Puducherry consultant
A DPR & subsidy consultancy service by Legal Kamkaz Associates LLP